I recently stayed at a hotel and my room keycard stopped working three times. In one case, I had stepped out of the room with just my keycard and my iPad 2. On checking out, I did a little experiment. I checked that the card was working, then I lightly brushed it against the edge of the closed Smart Cover. The card no longer worked. This surpised me, as I expected it to take contact with the open cover or with the stronger hinge magnets. The message is keep your hotel keycards away from your Smart Cover and avoid setting the keycard down on any ferrous surface shared with the SmartCover. This could also be an issue for any cards that are encoded by small portable units, such as library and student cards. I *think* that credit cards take a much stronger magnetic field, but I won't be taking any chances . P.S.: I took video of my experiment, but all my fumbling to hold my iPad, iPod Touch and keycard gave me motion-sickness when I watched it!